How much can you borrow for a renovation?

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Performing a renovation on your home, these are exciting times. Finally move an extra space to your living room or kitchen. It can be adjusted in just a few weeks. The disadvantage is of course its cost. Often there is a lot involved, especially if you do not have the money. What you can do is look out for a loan. Banks now also have a renovation loan on offer. How much can you borrow with this?

In the first place, it is important to know that you can only use a renovation loan to renovate your home.

In the first place, it is important to know that you can only use a renovation loan to renovate your home.

A new porch, new roof, new floors, finish or the like. It is all possible with a renovation loan. But you must be able to prove that you had these works carried out. You do that on the basis of invoices. Companies that do the work for you have to pay and an invoice follows. Hand this over to the bank so that they have the necessary proof. They often make the payment for you. You can work in this way until the amount borrowed is ‘used up’.

What many people do with the housing loan is to borrow an amount to renovate the house. If you can already make an estimate of all those costs in advance, you already have a head start. Because with an outdated home you often have a lot of costs. If you have the chance, have as many professionals as possible come by to make quotes. On the basis of that data you can quickly make a calculation of how high the costs will rise.

You must of course see that you can pay off everything.

You must of course see that you can pay off everything.

In both cases, you work with a loan and must return to the bank in the long term. With a renovation loan you still have to deal with a separate loan, so this comes on top of other loans. If you borrow together with the home loan, that amount is together with the repayment of the home itself. That is a bit easier to wear for a lot of families.

Calculate yourself how much you can borrow for a renovation. This can be done on the basis of a loan simulation, which you can perform on the website of a bank. Enter the amount you wish to borrow and the amount of time you wish to pay it off. Make sure you’re not over the limit is 1/3 of your monthly income. You can spend that amount on loans as a whole. You also don’t have to pin down on one bank, because you can borrow wherever you want. For a home loan you may be asked to move everything to that bank, including your fixed account and bank cards.

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